Abstract:
The purpose of this study is to explore the effects of firm size on profitability
of quoted manufacturing firms in Sri Lanka. In this study, data of 25 companies
which were active in Colombo Stock Exchange (CSE) between the years 2013 to
2017 has been used. As indicators of firm profitability Return on Assets, Return
on Equity and Net Profit Margin have been used whereas Total Assets and Total
Sales have been utilized as indicators of firm size. Correlation and regression
methods have been used in the empirical analysis. There is relationship between
firm size and profitability of listed manufacturing firms, the findings reveal. In
addition, the results showed that firm size has impact on profitability of the listed
manufacturing firms in Sri Lanka.
